Outsourcing: Another cost-saving strategy
Abstract: In times when cost-cutting is king, outsourcing some functions can be more appealing than ever to community banks. But, as this article explains, the key to success is finding the areas of a bank’s operation that are right for outsourcing. Should the internal audit function be outsourced? What about human resources, mortgage fulfillment or proof-of-deposit functions? It’s also important to carefully select and monitor the service provider. And, as a sidebar explains, offshore outsourcing can be a challenge for community banks that pride themselves on knowing their customers better than their larger counterparts do.